China has announced a series of measures aimed at invigorating its market dynamics by supporting private enterprises and reforming state-owned enterprises (SOEs). The government work report was delivered by Chinese Premier Li Qiang at the third session of the 14th National People’s Congress in Beijing.
The report outlined plans to stimulate the vitality of market entities by promoting reforms in key areas and removing institutional barriers. This includes fostering a fairer and more dynamic market environment to benefit both private businesses and the public sector.
Deepening SOE Reforms
The Chinese government emphasized the need to continue deepening reforms of SOEs. Plans are in place to refine the layout and adjust the structure of the state-owned sector. The government aims to establish a system that assesses SOE performance in fulfilling their strategic missions more effectively.
Boosting the Private Sector
To spur growth in the private sector, policies and measures will be actively implemented to support its development. The government pledged to effectively protect the lawful rights and interests of private enterprises and entrepreneurs. Private enterprises are encouraged to establish and refine modern corporate systems to enhance their competitiveness.
Supporting Enterprises and Ensuring Fair Practices
China plans to engage in regular communication with enterprises to help resolve practical difficulties and problems. Special initiatives will be launched to regulate enterprise-related law enforcement, focusing on tackling arbitrary charges, fines, inspections, and seizures.
The government also promised stronger punitive actions against those who act in bad faith, especially regarding overdue payments owed to enterprises. Long-term mechanisms will be implemented to address these issues and prevent unauthorized cross-jurisdictional and profit-driven law enforcement.
By conducting service-oriented administration, the Chinese government aims to boost the confidence of enterprises through satisfactory services, fostering a more robust and dynamic economy.
